Inflation, MMT’s proponents contend, can be controlled through taxation, and only becomes a problem at full employment...
... MMT stands for “modern monetary theory,” which is the doctrine that because the government prints money, it can spend whatever it wants. I would accept this, but with a caveat. I would say
the government can spend whatever it wants. . .until it can’t.
This changes everything, because the prospect of reaching the point where “it can’t” some time in the future constrains what is prudent to do today.
To me, the hyperinflation in Venezuela exemplifies what happens when a country reaches the “it can’t” point. The country is not at full employment. But the government can’t seem to spend its way out of difficulty. Somebody should ask these MMT rock stars about the Venezuela example.
https://feedly.com/i/entry/Nkn6RK6HwBgWrvMj84SxHg63I5Wn8O87ZvoPCQT30Mw=_1665d7edd67:2d6586:ff468023
